a. The moon wage rate without considering productiviy is $ /hr (round your response to the nearest penny). b. The moon "relative" wage rate considering productivity is $/hr (round your response to the nearest penny). c. Suppose that the U.S. wage rate is $23.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the U.S. need to become? The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place).
a. The moon wage rate without considering productiviy is $ /hr (round your response to the nearest penny). b. The moon "relative" wage rate considering productivity is $/hr (round your response to the nearest penny). c. Suppose that the U.S. wage rate is $23.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the U.S. need to become? The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1,280 moon pieces (mp) per dollar. Also, the wage rate is 22,800 mp per hour. Suppose further that
Question Viewer an produce 240 units per hour, while workers on the moon are expected to be able to produce 380 units per hour (the lower gravity level helps them work faster).
a. The moon wage rate without considering productiviy is $ /hr (round your response to the nearest penny).
b. The moon "relative" wage rate considering productivity is $/hr (round your response to the nearest penny).
c. Suppose that the U.S. wage rate is $23.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor
union agreements, what does the labor productivity in the U.S. need to become?
The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F473ac899-89b8-4dc2-aceb-e2a80110ca7b%2Fad613b11-b24e-4b49-bf43-d91fb10c29a1%2Fk5imr2l_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 1,280 moon pieces (mp) per dollar. Also, the wage rate is 22,800 mp per hour. Suppose further that
Question Viewer an produce 240 units per hour, while workers on the moon are expected to be able to produce 380 units per hour (the lower gravity level helps them work faster).
a. The moon wage rate without considering productiviy is $ /hr (round your response to the nearest penny).
b. The moon "relative" wage rate considering productivity is $/hr (round your response to the nearest penny).
c. Suppose that the U.S. wage rate is $23.50 per hour. If the U.S. managers want to become the location of choice for production, and if they cannot lower their wage rate due to labor
union agreements, what does the labor productivity in the U.S. need to become?
The labor produtivity in the U.S. needs to be at least units/hr (round your response to one decimal place).
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